Risk-Based Project Delivery Selection Model for Highway Design and Construction

Abstract

AbstractProject-delivery methods allocate risk for design and construction between contractual parties. State departments of transportation (DOTs) using federal funds employ three primary project-delivery methods: (1) design-bid-build (D-B-B); (2) design-build (D-B); and (3) construction manager/general contractor (CM/GC). Because the choice of a project-delivery method is best made early in the project-development process, it is a complex decision that is fraught with risk and uncertainty. This paper presents a risk-based modeling methodology to evaluate and quantify the potential differences in project cost attributable to the selection of a project-delivery method. The risk-based model consists of (1) an input structure of assessment and evaluation of delivery-risk factors; (2) a computational-modeling structure for calculating costs; and (3) an output structure to communicate model results and implementation. The assessment and evaluation process determines the risks that are incorporated into the del...